Sanctions End-Use Controls

Yesterday, legislation was laid before Parliament to introduce Sanctions End-Use Controls into specified trade sanctions regimes. These powers will come into force on 12th May 2026. 

To assist businesses, OTSI has published guidance on how these controls will be used. 

OTSI’s website can be found on GOV.UK

And here’s that guidance:

Guidance

Sanctions End-Use Controls: guidance for businesses

Published 22 April 2026

1. Disclaimer

This guidance is set out to support UK businesses potentially affected by Sanctions End-Use Controls. It does not constitute legal advice. Any party in doubt about its legal position should seek independent legal advice.

2. Foreword

Sanctions End-Use Controls form part of the wider approach of the government to tackling the circumvention of trade sanctions. This publication is intended to help UK businesses understand Sanctions End-Use Controls that have been introduced in relevant sanctions legislation containing export prohibitions, and to support exporters to third countries where there is a high risk of diversion of goods and related technology to a sanctioned destination or person. It sets out the key features of the controls, what exporters can expect if ‘informed’ by the government that their goods or related technology may pose a sanctions diversion risk, and how to respond in practice. It also provides clarity on the intended operation of Sanctions End-Use Controls and outlines best practice around compliance, record keeping, and risk awareness. This guidance will be updated as necessary.

3. Sanctions End-Use Controls (SEUC)

Sanctions End-Use Controls constitute a new licensing requirement for export to a non-sanctioned third country where the exporter has been informed by the government that there is a risk of ultimate diversion of the goods or related technology, via that route, to a sanctioned destination. These controls build upon current ‘making available’ prohibitions, that make it an offence to make available restricted goods and technology to a sanctioned destination by direct or indirect means.  

This measure will only apply to goods, or technology related to the export of a good, that are not otherwise subject to strategic export controls (i.e., items that are not included on the UK’s strategic control lists for military and dual-use items, or subject to the UK’s WMD or Military End-Use Controls).  

Sanctions End-Use Controls are designed to: 

• prevent sanctioned goods and related technology from reaching sanctioned jurisdictions and end users 
• complement existing circumvention provisions under the Sanctions and Anti-Money Laundering Act 2018 (SAMLA) 

The government will apply this control where there are concerns around sanctions diversion risks with the end user of the good or technology.

4. Purpose of the measure

Trade sanctions include prohibitions on supplying specific goods and related technologies to specific locations and people. The government has seen sanctioned countries go to great lengths to circumvent our trade sanctions by purchasing sanctioned goods and related technologies via intermediaries in third countries. 

Prior to the introduction of Sanctions End-Use Controls, in situations where the government suspected specific shipments were at risk of being diverted to sanctioned destinations, HMRC and DBT were able to advise the exporter of the risk. Once advised of the risk, it was at the discretion of the exporter whether to continue with the export.  

Once a good has left the UK there are limited options for the government to prevent onward diversion to sanctioned people and destinations. If a sanctions breach has occurred, this is a criminal offence. However, enforcement action of such an offence takes place after the breach has occurred and cannot prevent the transfer occurring in the first place.  

Sanctions End-Use Controls give the government the power to impose a licensing requirement on UK exporters who wish to progress specific exports, once they have been informed by the government of a high risk of the goods and related technologies being diverted to a sanctioned person or destination. This applies where such exports are not otherwise subject to export controls. Ultimately this will allow the government to assess and, where necessary, prevent exports where there is a credible risk of diversion of an item subject to sanctions to use by a sanctioned person or in a sanctioned destination. This is an important tool to tackle circumvention of trade sanctions at source.

5. Goods covered by Sanctions End-Use Controls

Sanctions End-Use Controls apply to all trade sanctions regimes where restrictions extend beyond arms embargoes (where the military end-use control already applies). Currently this means it applies to goods and related technologies sanctioned under the following sanctions regimes: 

• Republic of Belarus  
• Democratic People’s Republic of Korea  
• Iran 
• Iran (Nuclear)  
• Libya 
• Myanmar  
• Russia and non-government-controlled territories of Ukraine  
• Somalia 
• Syria 
• Venezuela  
• Zimbabwe  

However, the requirement to obtain a licence under Sanctions End-Use Controls only applies following a process where the government ‘informs’ an exporter that their goods or related technologies and, if applicable, related technology may be at risk of diversion to a sanctioned end user, intermediary, or jurisdiction.  

Once an exporter has been informed, it becomes a criminal offence to export those goods or related technologies without first obtaining an appropriate licence to export. Exporters who have not been ‘informed of the need for a licence should continue as normal. These regulations do not establish a blanket requirement for licensing types of goods or technologies. Exporters will be notified if the government deem a licence is necessary.

6. What to do when you get ‘informed’

Sanctions End-Use Controls are designed and intended to be used in a targeted way, where the government has identified a specific sanctions diversion risk linked to the good or exporter, the route, end user or intermediary. 

If you are informed by the Department for Business and Trade (DBT), which may come through HMRC’s national clearance hub or through direct contact with DBT (through the Office of Trade Sanctions Implementation, OTSI), that your export is at risk of sanctions circumvention you will receive a written informing notice which will: 

• identify the shipment or transaction in scope, 
• set out that an export licence is required before the goods or technologies can be exported 

From the point you are informed, you must not proceed with export of the goods or technologies covered by the notice unless a licence is granted. If you choose not to apply for a licence and still seek to export the goods or technologies after being informed, you will be in breach of UK sanctions law and subject to enforcement action. 

If the goods have already been intercepted at the border, HMRC may: 

• detain the goods while a licensing decision is made 
• allow the goods to be returned to the exporter, pending the outcome of the licence application 

When you are informed, you will be given information on how to apply for a licence, and any evidence you should provide to help DBT assess the risk of diversion.  

OTSI is currently not accepting advance sanctions end-use controls licence applications. You should wait to be informed before applying for a licence. OTSI will keep this approach under consideration.

7. When goods may be stopped at the border

Sanctions End-Use Control powers apply to all goods and related technologies within the sanctions regimes outlined in section 3, where these are not otherwise controlled under strategic export control legislation.  

As a general rule, the government will seek to apply Sanctions End-Use Controls to address exports that have been identified and publicised to exporters as of potential concern. the government will always endeavour to publicise known risks to assist businesses in understanding higher risk goods and transactions. 

Currently, the highest risks identified by the government are related to circumvention of our Russia regime. The government has published guidance on the highest risk goods and export destinations in our Countering Russian Sanctions Evasion: Guidance for Businesses, which is kept up to date as patterns of circumvention change and will inform OTSI’s application of sanctions end-use controls. You can also check the Russia Common High Priority List, an internationally agreed list of Western items critical to Russian weapons systems and its military development. 

The government uses a range of sources to inform and prioritise which exports are most at risk of circumvention. This includes, but is not limited to, publicly available sanctions evasion typologies and data indicating increased risk. Exporters are strongly encouraged to do the same as relates to their products and end users. 

The requirement for a licence only applies where the exporter has been ‘informed’. Goods will only be subject to a licensing requirement where the government has informed’ you in writing of a specific diversion risk. This risk will be assessed on a case-by-case basis.  

OTSI does not intend to impose blanket licensing requirements for a specific type of good going to a specific destination but reserves the right to do so, should the need arise.

8. How to apply for a licence

If you are informed under Sanctions End-Use Control powers, you must apply for a licence before proceeding with the export of the goods or technologies covered by the informing notice. 

Find out how to submit a licence application to the Office of Trade Sanctions Implementation (OTSI). 

Applications will be assessed on a case-by-case basis by DBT, working closely with other departments as needed. Factors that could be considered include: 

• the nature of the good or related technology and its potential uses 
• the diversion risks associated with the customer, route or end-user 
• the exporter’s compliance history and due diligence processes 
• any additional intelligence available to HM Government 

Possible outcomes include: 

• the licence is granted, and the export may proceed subject to any licence conditions 
• the licence is refused, and the goods or technologies may not be exported to the end-user or route identified 

The complexity of the case and the availability of information will affect how long it takes to reach a decision. Exporters are encouraged to submit detailed, complete and accurate applications as early as possible after receiving an ‘informing’ letter to minimise potential delays.

9. Information needed for a licence application

Further information on applying for a trade sanctions licence can be found at the following link: 

• apply for a licence to provide sanctioned trade services – GOV.UK

10. Record keeping and due diligence requirements

Sanctions End-Use Controls do not change your record keeping or due diligence expectations. If exporting goods or related technologies, you are expected to conduct adequate due diligence to demonstrate compliance with UK sanctions. If you are informed, you may be asked to supply details of your due diligence and a licence for export will be granted if you can satisfactorily demonstrate that your goods are not ultimately destined for a sanctioned destination. 

For more information on due diligence please read our countering Russian sanctions evasion – guidance for businesses. While this guidance is Russia-specific, much of the advice can be applied to other UK trade sanctions regimes.

11. Penalties for non-compliance

Failure to comply with the licensing requirement pursuant to a notice issued under Sanctions End-Use Controls is a breach of trade sanctions and may result in enforcement action. 

Possible consequences include: 

• detention or seizure of goods by HMRC at the border 
• revocation or refusal of existing and future export licences 
• being publicly named under OTSI’s powers to name companies who breach sanctions  
• a report about the breach being published by OTSI 
• OTSI imposing a monetary penalty 
• criminal investigation and potential prosecution 

HMRC is responsible for the enforcement of trade sanctions within its role as the UK customs authority. This applies to goods that cross the UK border and strategic goods and technology (as well as services ancillary to those movements). HMRC also criminally investigates relevant breaches referred by other agencies. OTSI leads on the civil enforcement of sanctioned services, as well as trade in sanctioned goods, technologies and services outside the UK, where a UK person is involved. OTSI can refer cases to HMRC to consider criminal investigation.  

In some circumstances, monetary penalties may be imposed on a strict liability basis. This means that a monetary penalty can be imposed even where the person did not know or have reasonable cause to suspect that they were in breach of sanctions.  

Exporters are encouraged to cooperate fully with any enquiries by HMRC, OTSI or other enforcement authorities and to seek legal advice where appropriate.

12. Case studies

Sanctions End-Use Controls apply to exports to non-sanctioned destinations where the exporter has been informed by the government that the export is at risk of diversion to a sanctioned destination. During the licensing process it may be determined that this risk is minimal and therefore the government is content with the onward export of these goods or related technologies. In these circumstances, a licence will be issued for the export of these goods or related technologies. If, however, the exporter ignores the informing letter and proceeds with the export without applying for a licence, this would constitute a criminal offence.

12.1 Case Study 1: Licence refused after being ‘informed’

For example:

A UK company exporting industrial cooling systems to a Central Asian third country distributor is informed by DBT that the goods are likely to be re-exported to a sanctioned Russian entity. The goods were stopped at port by HMRC and the details referred to DBT for assessment. The company then receives a letter requiring them to apply for a licence under the Sanctions End-Use Controls. The goods are either held or can be returned to the customer pending a decision. These goods cannot be exported to the end user until the outcome is determined. The application is refused due to diversion concerns. The company updates its due diligence procedures and stops trading with that distributor.

12.2 Case Study 2: Licence granted after being ‘informed’ 

For example:

A UK trader applies for a licence to export precision electronics to a Middle Eastern country after being stopped at customs and informed. During the licence review, the exporter provides clear information on the end use of the products that indicates a reduced risk of diversion. The exporter is issued with a licence for these goods, and the export can continue its onward journey. 

12.3 Case Study 3:  Continuing with an unauthorised export after having been ‘informed’  

For example:

A freight forwarder receives an informing letter about a consignment of bearings due for export to a company in the Caucasus region, raising diversion concerns. The letter makes clear that an export licence is required before proceeding. The forwarder overlooks the letter and exports the shipment. The company is investigated for breach of Sanctions End-Use Controls, and risks enforcement action as set out in section 8.

13. Further information

13.1 Goods are not being banned for export

Sanctions End-Use Controls are a targeted mechanism that only apply once you are informed of specific risk factors. If informed, you must apply for a licence before exporting. 

13.2 Differences between SEUC and existing catch-all controls

The UK’s existing end-use export controls apply where there are specific risks that an item might be used for the production of WMD or for a military end use in a country subject to a full or partial arms embargo. Sanctions End-Use Controls focus on goods and related technology not subject to these controls (e.g. where they are not for export to a country subject to a full or partial arms embargo), but where there is an identified risk of circumvention of an export subject to sanctions for use in a sanctioned destination or by a sanctioned person.  

13.3 Comparison of UK sanctions end‑use controls and the EU catch‑all provisions

The UK SEUC are similar to the EU’s “catch-all” provision in that they both provide powers to impose licensing conditions on goods to prevent circumvention, however, sanctions end-use controls apply across all sanctioned goods in all sanctions regimes, whereas the EU’s “catch-all” provision applies only to the highest risk goods within their Russia sanctions. 

13.4 Applying for a licence where there is a risk of diversion

If you believe your goods are at risk of diversion to a sanctioned destination , you should consider not carrying out the transaction. You are strongly encouraged to undertake further due diligence before proceeding and you may also wish to seek legal advice. Sanctions regulations prohibit direct and indirect supply, so you may be at risk of a breach of sanctions regulations if you proceed with a transaction where you have reason to believe the goods are ultimately intended for a sanctioned jurisdiction or person. 

OTSI is not currently accepting advance licence applications but will keep this under review. You should wait until you are informed before submitting a licence application. If you suspect that your export may be in scope of Sanctions End-Use Controls and have determined that you wish to proceed.  In any event, the licensing process should not be used as a replacement for substantive due diligence. To speed up the process you are encouraged to provide as much information as possible during the licensing process. For more information please read our guidance on applying for a licence from OTSI.

14. Contacts and further information

• contact the Office of Trade Sanctions Implementation 
• guidance on applying for a licence from OTSI 
• sanctions Guidance Hub